THE EFFECT OF ISLAMIC FINANCIAL LITERACY ON SAVINGS DECISIONS IN ISLAMIC BANKS WITH CUSTOMER VALUE MEDIATION (CASE STUDY: MEDAN CITY)
Main Article Content
Ihsan Rambe
Fathurrahman Djamil
Koesmawan
Didin Saepudin
This study aims to test, analyze and reveal the important role of Islamic financial literacy in improving saving decisions both directly and by mediating customer value at the Islamic banks. Customer value as an emotional bond that arises between customers and Islamic banks as intermediaries (mediation), is expected to be a stimulation for Islamic financial literacy to influence the decision to save in an Islamic bank. Previous research Bayar, et al (2017), Antara, et al (2017) hopes that literacy can advance Islamic finance. This research confirms that Islamic financial literacy can improve saving decisions at Islamic banks in Medan. The methods used in this study are descriptive and verifiable methods with a quantitative approach. The data analysis technique uses Partial Least Square (PLS) to see the structural model along with the relationship and influence of Islamic financial literacy and customer value and saving decisions in Islamic banks. This research proves that directly and indirectly Islamic financial literacy plays an important role in improving savings decisions in Islamic banks in Medan. Emotional ties also help Islamic financial literacy to improve savings decisions in Islamic banks in Medan.
Ahmad, Imad-ad-Dean. 2015. Individual rights and responsibilities, morality, relativism and self-interest in Handbook of Research on Islamic Business Ethics, edited by Abbas J. Ali Northampton, MA: Edward Elgar.
Al – Arif, M. Nur Rianto. (2013). Basic – Basics of Islamic Economics. First Printing. Solo : PT Era Adicitra Intermedia.
Ancok, Jamaludin and Fuad Anshari Suroso. (2013). Islamic Psychology: Islamic Solutions to Psychological Problems. Student Library. Yogyakarta.
Ardhanari, M. (2018). Customer Satisfaction Affects Brand Preference and Repurchase Intention Private Brand. Journal of Economic and Business Research (pp. 58-68).
Ascarya, Diana Yumanita. (2015). Islamic Banks: Overview – Central Sector Series No. 14. Jakarta: Center for Central Bank Education and Studies (PPSK) of Bank Indonesia.
Band, William, A. (1991). Creating Value for Customers, John Wiley and Sons Inc.
Bank Indonesia and Centre for Business and Islamic Economics Studies (CBIES) FE UB. (2016). Executive Summary: Potential, Preference, and Public Behavior towards Sharia Banks: A Study in the East Java Province.
Pay, M. Y., Sezgin, H. F., Öztürk, Ö. F., & Şaşmaz, M. Ü. (2017). Impact of financial literacy on personal savings: A research on Usak University staff. Journal of Knowledge Management, Economics and Information Technology, VII(6), 1–19.
Bhabha, J. I et al. (2014). Impact of Financial Literacy on Saving-Investment Behavior of Working Women in the Developing Countries. Research Journal of Finance and Accounting, 13(5), 118-122.
Chen, H., & Volpe, R. p. (1998). An analysis of personal financial lieracy among college students. financial service review 7 (2):107-128, 6Farooq, Mohammad Omar. (201 6). Self-Interest, Homo Islamicus and Some Behavioral Assumptions in Islamic Economics and Finance. Bahrain Institute of Banking and Finance. Journal of Excellence In Islamic Banking and Finance, 2011 – papers.ssrn.com. Electronic copy available at http://ssrn.com/abstract=17400729.
Flint, D.J., Woodruff, R.B. and Gardial, S.F. (1997). Customer Value Change in Industrial Marketing Relationships: A Call for New Strategies and Research. Industrial Marketing Management, Vol.26, pp.163-175.
Fournier,S. (1998). Consumers and their brands: developing relationship theory in consumer research. Journal of Consumer Research, Vol 24, No 4, pp. 343-373.
Gale, Bradley T. (1994). Managing Customer Value: Creating Quality Service that Customers Can See. New York, NY: Simon & Schuster.
Goh, Tiong Thye; Norazah Mohd Suki, Kim Fam. (2014). Exploring a Consumption Value Model For Islamic Mobile Banking Adoption, Journal of Islamic Marketing, Vol. 5 Iss 3 pp. 344-365. DOI 10.1108/JIMA-08-2013-0056.
Lusardi, A., Mitchell, O. S. & Curto, V., (2014). Financial literacy and financial sophistication in the older population. Journal of Pension Economics and Finance, pp. 1-20.
Mahdzan, N. S., and Tabiani, S. (2013). The Impact of Financial Literacy on Individual Saving: an Exploratory Study in the Malaysian Context, Transformation in Business and Economic, Vol. 12, No. 1., pp. 41-55.
Murugiah, L. (2016) 'The Level of Understanding and Strategies to Enhance Financial Literacy among Malaysian'. International Journal of Economics and Financial Issues, 6(3S), 130–139.
Reni, Andi; Nor Hayati Ahmad. (2016). Application of Theory Reasoned Action in Intention to Use Islamic Banking in Indonesia. Al-Iqtishad: Journal of Islamic Economics Volume 8 (1), January 2016. Pages 137-148
Solimun. (2014). Modeling structural equations of the PLS approach. MIPA Universitas Brawijaya.
